American Healthways Board of Directors Authorizes Stock Repurchase for Up to 500,000 Shares.Business Editors NASHVILLE, Tenn.--(BUSINESS WIRE)--March 20, 2000 American Healthways, Inc. (Nasdaq/NM:AMHC AMHC Association of Mental Health Clergy AMHC Aviation Structural Mechanic Hydraulics Chief ) today announced that the Board of Directors has authorized the repurchase of up to 500,000 shares of the Company's common stock. The authorization enables the Company to make the repurchases from time to time in the open market or in private transactions prior to March 1, 2002. American Healthways had 8,248,947 shares of common stock outstanding at February 29, 2000. Thomas G. Cigarran, Chairman and Chief Executive Officer of the Company, said, "This action by the Board reflects its confidence in American Healthways' future prospects and its belief that, at current market prices, the Company's stock is substantially undervalued Undervalued A stock or other security that is trading below its true value. Notes: The difficulty is knowing what the "true" value actually is. Analysts will usually recommend an undervalued stock with a strong buy rating. and its repurchase represents an attractive use of available Company funds. "At February 29, 2000, American Healthways had cash and cash equivalents of approximately $7 million, stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. of approximately $31 million and no long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. . We believe this strong financial position enables American Healthways to do the announced stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. without having an effect on the Company's ability to finance its growth strategies." This press release contains forward-looking statements that are based upon current expectations and involve a number of risks and uncertainties. In order for the Company to utilize the new "safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " provisions of the Private Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. Reform Act of 1995, you are hereby cautioned that these statements may be affected by the important factors, among others, set forth in American Healthways' filings with the Securities and Exchange Commission and, consequently, actual operations and results may differ materially from those expressed in these forward-looking statements. The Company disclaims any intent or obligation to update these forward-looking statements. American Healthways, Inc. is the nation's leading provider of specialized, comprehensive disease management services designed to improve the quality and lower the cost of healthcare for people with one or more chronic diseases, such as diabetes, cardiac disease and respiratory disease Noun 1. respiratory disease - a disease affecting the respiratory system respiratory disorder, respiratory illness adult respiratory distress syndrome, ARDS, wet lung, white lung - acute lung injury characterized by coughing and rales; inflammation of the . The Company provides these services through comprehensive disease management programs under contract with health plans and other at-risk healthcare organizations and through 68 hospital-based treatment centers. At the end of the second quarter of fiscal 2000, it had contracts to provide disease management services to health plans with over 7 million enrollees, including approximately 157,000 individuals with diabetes, cardiac disease and/or respiratory disease who will be managed by the Company. |
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